Bitcoin falls below $US2000 amid fight between miners and developers

Bitcoin falls below $US2000 amid fight between miners and developers

Bitcoin fell below $US2000 for the first time since May amid anxiety its dominant status is under threat.

As enthusiasts consider adopting competing updates to the blockchain technology that underpins the exchange method by the end of July, it has raised the possibility of the cryptocurrency splitting in two. Bitcoin has lost about a third of its value since peaking at about $US3000 last month. Calls for a revamp of the software come as exchanges struggled to keep up with rising volumes while the price almost tripled this year.

Bitcoin isn’t the only one struggling as the two competing camps — miners and developers — are facing off over how to deal with increasing transaction times and processing fees. The 30 largest cryptocurrencies have all suffered declines over the past seven days, according to data from coinmarketcap.com. Bitcoin has lost about 20 per cent of its market value, while the second-biggest digital coin — ethereum — has lost 30 per cent.

Cryptocurrency exchange GDAX said it anticipates temporarily suspending bitcoin deposits and withdrawals after the August 1 software update deadline, and may also pause trading.